Investment banking (IB) is a type of banking that offers services related to raising capital to other companies and sometimes even governments.
Investment banks (referred to as "banks" here) employ investment bankers (referred to as "bankers" here) who routinely guide their clients through vast and complicated transactions. In addition, they identify associated risks for their clients, thereby saving clients' resources (time and money) before they proceed forward.
They help plan and manage the financial aspects of sizable projects, and their services include:
- Facilitating and underwriting the sale of securities
- Advising on restructuring
- Connecting buyers and sellers
- Advising on deal structuring and valuations in merger and acquisition (M&A) transactions
The fees paid by clients are a significant determinant of their earnings.
IB is a borderless career where bankers work with clients worldwide, meaning they manage their schedules around the clients' time zones. They typically work for extended hours into the night.
However, the stressful work and the high-pressure environment reward them generously with high earnings and outstanding opportunities to advance their career.
Before we dive into the article, here is a summary of who makes how much at an investment bank.
| Role | Base Salary ($) | Average Year-End Bonus (% of base) |
|---|---|---|
| Summer Analyst | $65,000 - $80,000 | 10% |
| Analyst | $100,000 - $120,000 | 50% - 100% |
| Associate | $150,000 - $200,000 | 50% - 100% |
| Vice President (VP) | $200,000 - $225,000 | 50% - 150% |
| Senior Vice President (SVP) | $250,000 - $500,000 | > 100% |
| Managing Director (MD) | $400,000 - $600,000 | > 100% |
Components of an investment banker's salary
Unlike most industries, salary in IB is not a fixed end-of-the-month sum; instead, it has many components, which we have listed below.
- Base salary: This is "salary" in the conventional sense. It is earned biweekly, is stable, and increases each year. Performance does not affect this component much.
- Stub bonus: It is only a fraction of the usual bonus because banks recruit from target schools in the middle of the calendar year. It is generally 20%-30% of the first-year base salary.
- End-of-year bonus:They earn this after their first full year working. Analysts and Associates, and even high-ranking bankers at smaller firms, receive this sum entirely in cash. Bulge bracket and publicly traded banks often pay most of this bonus as deferred or stock-based compensation instead. Deal flow and individual performance determine the year-end bonus, which is usually represented as a percentage of base salary.
- Deferred and stock-based bonus: Associates with some experience at publicly traded banks receive a part of their total bonus in stock that vests over the years. This portion forms a more significant part of the bonus as they move up the ranks and serves two purposes-compliance with regulations and incentivizing employees to stay at the firm.
- Signing bonus: Analysts typically receive about $10,000 to $15,000 in signing bonus when they accept full-time offers, while Associates receive about $50,000 to $60,000.
- Other benefits: IB positions also come with additional perks like health insurance, 401(k) retirement plans, vacation days, etc.
Roles and salaries in IB
The career path in IB is relatively standard and does not vary much from bank to bank. However, the titles may differ. The usual front office hierarchy at an investment bank is presented below in ascending order.
- Summer Intern
- Analyst
- Associate
- Vice President (VP)
- Senior Vice President (SVP) or Director
- Managing Director (MD)
This article gives an overview of the responsibilities and compensation at each level. Please note that the compensation figures are mainly based on banks in the US. The pay can be slightly lower at smaller banks and in other regions.
Summer Intern
An internship allows banks to filter the cream of the crop, as few students can put in 80+ hours every week, deliver timely and accurately, and last the entire internship period.
Astoundingly, banks recruit interns up to a couple of years before the internships. Aspirants usually win internships by networking, submitting applications, and acing a series of interviews and assessments.
Their primary duty is assisting Analysts and Associates with everything from trivial tasks like ordering food to core tasks like financial modeling and analysis. However, entry-level bankers perform these functions in their full-time jobs as well.
The WSO salary database indicates that summer interns usually earn between $65,000 and $80,000 (extrapolated for a year based on hourly rates assuming 2,000 work hours) with humble bonuses of less than 10% of the base on average.
IB Analyst pay guide
They handle all things Excel and PowerPoint and administrative functions like:
- Coordinating between buyers and sellers
- Managing data and documents
- Responding to requests from clients
However, exceptions exist, and some elite boutique banks pay their Analysts $10,000 to $20,000 higher than the average base salary and bonuses closer to 100%.
Salary of an IB Associate
They have more experience and a higher salary than Analysts. They assign the grunt work to Analysts, review it, and lend a hand with Excel and PowerPoint on complicated assignments.
They usually do not get called in for last-minute emergencies, so they work slightly fewer hours (60-80 hours/week) than Analysts. In addition, they are also a part of more meetings and have more client interactions. However, they do not have a notable role in those meetings.
Their average base salary starts at about $150,000 and increases to about $200,000 in equal increments over the years. They bag bonuses of about 50% of the base on average, but some elite boutique banks award bonuses well over 100%. Please note that these numbers do not represent all banks, and actuals can vary.
Investment banking Vice President (VP) salaries
They are often project managers and do not engage in granular tasks. Instead, they receive requests from Directors and Managing Directors and ensure that Associates and Analysts get the job done. Additionally, they also review the work done by their juniors to ensure that it meets the quality standards. They enjoy an even more client-facing role than Associates. As a result, VPs learn to develop relationships and bring in clients over time.
The WSO database indicates that the average bonus is underwhelmingly less than 100% of the base, but some elite boutiques pay well over 100%. It is noteworthy that bonuses are discretionary and may vary depending on the bank, its performance, and the banker's performance each year.
Senior Vice President (SVP) or Director
There are other variations of this title in the industry, like Principal and Executive Director (ED). The role differs bank by bank, but it is safe to say that it is a mix of the Vice President and Managing Director positions. They equally devote their time towards bringing in clients, developing relationships, and managing projects. Nonetheless, since the next level is all about winning clients, SVP must start doing more of that to progress ahead.
As SVP, there is a sizable bump in the salary over the previous level. The normal range for their total compensation is from $500,000 to $1M, with the bonus forming more than half of it. Bonuses start to matter much more here onwards.
How much do Managing Directors (MDs) at investment banks make?
They are responsible for winning clients and, thus, generating revenue. They spend most of their time developing relationships with current and prospective clients and traveling. Although the workweeks are about the same as at the Director level, this role demands even more traveling.
Although it is one of the most, if not the most, senior titles in the hierarchy, they generally don't make eight-figures. Of course, their total compensation can considerably differ from bank to bank, but it may range from $1M to a few million if they and their bank perform decently.
The bonus, which is highly variable and directly linked with their contribution to the bank's deal flow and revenue, forms a significant part of the millions they earn. It can range from zero to a million or more. In addition, elite boutique banks offer bonuses in cash rather than restricted stock.
Below, we have summarized the salary data presented in this article for you.
| Role | Base Salary ($) | Average Year-End Bonus (% of base) |
|---|---|---|
| Summer Analyst | $65,000 - $80,000 | 10% |
| Analyst | $100,000 - $120,000 | 50% - 100% |
| Associate | $150,000 - $200,000 | 50% - 100% |
| Vice President (VP) | $200,000 - $225,000 | 50% - 150% |
| Senior Vice President (SVP) | $250,000 - $500,000 | > 100% |
| Managing Director (MD) | $400,000 - $600,000 | > 100% |
IB Compensation by region
While banks pay similar sums across various locations in the US, the same is not valid for locations outside the US. The starting base salary for a first-year Analyst in the US has been bumped up to $100,000, for instance, while it is only two-thirds of that in London.
The gaps in compensations of US and European banks have slightly widened in the past year or two, reversing the trend of the previous years.
Here is a summary of pay in New York, London, and Singapore to give you an overview of how much they can differ across the world. Bonuses are discretionary and largely depend on the bank, deal flow and performance, and individual performance, so we will compare base salaries here. All figures represent averages in USD.
| Role | New York | London | Singapore |
|---|---|---|---|
| Summer Analyst | $65,000 - $80,000 | N/A | N/A |
| Analyst | $100,000 - $120,000 | $68,000 - $82,000 | $90,000 - $110,000 |
| Associate | $150,000 - $200,000 | $122,000 - $166,000 | $110,000 - $165,000 |
| Vice President (VP) | $200,000 - $225,000 | $197,000 - $230,000 | $200,000 - $235,000 |
| Senior Vice President (SVP) | $250,000 - $500,000 | $250,000 - $400,000 | $275,000 - $340,000 |
| Managing Director (MD) | $400,000 - $600,000 | $550,000 - $750,000 | $385,000 - $450,000 |
IB salary in New York
Being where the grand Wall Street and its institutions are located, the overwhelming deal flow at New York investment banks warrants higher salaries than other regions in the world.
IB analysts in NY can expect to earn as much as 50% more than those in London. The pay gap between them narrows as they progress in their careers. However, MDs in London earn a significantly higher base salary. Bonuses are a different discussion altogether as they greatly vary depending on the year, firm, individual performance, etc.
The pay gap between NY and Singapore is narrow at the bottom levels but significantly widens going up the ladder.
London IB pay guide
Statistically speaking, the front office roles in investment banking (M&A, Sales, Trading, ECM, etc.) earn drastically more if one can stick around beyond the age of 25. Besides, promotions are the key points in IB careers, as base salaries and bonuses get bigger and bigger with each promotion.
Between 21 years of age to 25 years, Bankers get promoted from Analyst to Associate, and their base salary increases to about $120,000 from $80,000. Sticking till 30 will earn you the Vice President (VP) title and grow your base salary to at least $195,000. VPs are typically promoted to Director or Senior Vice President (SVP) around the age of 35 and can start earning over $250,000 up to $400,000. Bankers who show guts by staying till the age of 40 become MDs and receive well over $500,000.
Singapore IB pay guide
Getting into the Singapore market is no easy feat especially coming from another country without experience in Singapore. But it's not impossible. Salaries in Singapore are decently good, especially for those starting their careers with bulge bracket banks. So the result is quite satisfying even though the market is tough to enter. Along with a great basic salary, you also get a hefty bonus.
Although high, Singaporean figures are not quite at par with what European and American banks pay their bankers. However, IB salaries in Singapore are comparable to those at mid-tier banks in the US (next section). Besides, the IB market is much smaller in Singapore, and the work culture is also quite different.
They rarely work on major deals; thus, the external pressure is far lesser. While work hours are not shorter as teams are smaller, the teams are closely-knit. Furthermore, MDs are accessible to even entry-level analysts. Surprisingly, the focus is more on sales than on technicalities, so people rarely build models and do valuations. Hence, there tends to be more concentration on sales and pitch-books-making skills.
Bulge Bracket vs. Boutique investment banker salaries
As WSO user @2226416 pointed out, the revenue per banker at elite boutique banks is usually much higher than bulge bracket banks. Boutique banks have lean operational models, as evident from their fewer employees and low admin overheads. As a result, a higher portion of revenue flows through to bankers in the form of higher base salaries and bonuses.
Hence, despite being smaller, boutique banks can pay competitive salaries compared to bulge bracket banks. Moreover, they also follow the principle that deal teams should receive a larger part of the payout, so they get a larger portion of deal commissions.
Below is a brief comparison of salaries in the bulge bracket and elite boutique and mid-tier banks in the US.
Role | Bulge Bracket (BB) | Elite Boutique (EB) | Mid-Tier Banks |
|---|---|---|---|
Analyst | $100,000 - $130,000 | $110,000 - $140,000 | $90,000 - $120,000 |
Associate | $180,000 - $250,000 | $195,000 - $265,000 | $130,000 - $220,000 |
Vice President (VP) | $230,000 - $270,000 | $245,000 - $292,000 | $180,000 - $235,000 |
Senior Vice President (SVP) | $260,000 - $450,000 | $280,000 - $475,000 | $250,000 - $375,000 |
Managing Director (MD) | $475,000 - $1,000,000 | $500,000 - $1,060,000 | $400,000 - $550,000 |
The below video walks you through using the WSO Company and Salary Database.
Impact of COVID on IB salaries
Initially, the M&A activity stumbled significantly but raising capital via equity and debt kept investment bankers busy while the US Fed went on printing money. Soon after, the M&A activity bounced back when medical experts confirmed that the pandemic would not wipe out human civilization and gave hope in the form of vaccines.
Regardless, the pandemic has brought in some noteworthy changes.
- Banks have stopped adhering to a pay range. Previously, bankers' salaries did not vary much and fell within a relatively narrow range, regardless of the bank.
- Covid has affected compensations dissimilarly in different roles and at various banks. For instance, the base salary at bulge bracket banks was slightly underwhelming the past year, while elite boutique banks paid their employees relatively generously. In addition, the base salaries for the Associate and higher ranks have hiked over the past few years, while the bonus range for Analysts has grown broader.
- The lack of real-life interactions made working long hours exceedingly intolerable, which resulted in various banks finding it difficult to retain new hires. As a result, they fast-tracked promotions for Analysts and Associates to incentivize them to stay longer.
The WFH culture may be here to stay, and it might even provide some comfort against the long workdays. However, new employees may find it challenging to work comfortably in a team of unknown people without interacting with them in person.
FAQs
Investment Banker Salary - You'll Be Surprised How Much They Make? ›
Executives in investment banking can make upward of $300,000-$500,000 per year. Investment banking can also lead to other high-paying careers in finance, such as private equity and wealth management.
Can investment bankers make 500k? ›Executives in investment banking can make upward of $300,000-$500,000 per year. Investment banking can also lead to other high-paying careers in finance, such as private equity and wealth management.
How much do investment bankers really make? ›The amount that investment bankers get paid also varies by city. The average investment banking salary is $157,000 per year and just over $75 per hour. The lowest-paid analysts and associates in the banking industry earn roughly $102,000 yearly, while the top 10% make $244,000.
Do investment bankers still make a lot of money? ›When adding in bonuses, some of these bankers can end up taking home $200,000 or more per year. Granted, not all investment bankers are salaried. As the Corporate Finance Institute points out, it is possible to nab a $100,000 salary out of school, but it's not always the case.
Is the investment banking salary worth it? ›Do investment bankers get paid well? Generally speaking, yes—investment bankers earn high salaries. Even entry-level professionals in this field can make over $100,000 annually. However, investment bankers work long days in high-stress environments.
How much do I need to invest to make $1000000? ›Even with an average annual return of 10%, you'll have to save $481 per month to get to $1 million before you retire. At 6%, you would need to save $1,021 per month.
How much to invest to get $100,000 in 5 years? ›If you can afford to put away $1,400 per month, you could potentially save your first $100k in just 5 years. If that's too much, aim for even half that (or whatever you can). Thanks to compound interest, just $700 per month could become $100k in 9 years. “The first $100,000 is the hardest to save.”
Can investment bankers make 7 figures? ›Investment Banking Managing Director Salary + Bonus: Base salaries are in the mid-six-figure range, with total compensation in the high six figures to low seven figures. An MD doing decently should earn between $1 and $3 million per year, and sometimes a low multiple of that (as of 2022).
Can you be a millionaire as an investment banker? ›It is possible to become a millionaire as an investment banker, but it is not easy. Investment bankers typically earn salaries in the $200,000 to $700,000 range, with bonuses that can bring their total income up to several million dollars per year.
Why are investment bankers so rich? ›For a hefty fee, they bring industry, financial, and transactional expertise. They are basically gatekeepers — a company that wants to issue stock, issue debt, buy other companies, or sell itself has to engage with an investment bank (though some tech firms are working on ways around this).
Do investment bankers have a good life? ›
It is no surprise that the average day in an investment banker's life is long and stressful. Those who manage to survive the adjustment period often go on to have long and financially rewarding careers. Investment banking analysts may work up to 100 hours per week at some firms.
Is it stressful to be an investment banker? ›Managing the pressure
There is no doubt that there will be times when you'll be under a lot of stress, even though the high stakes and fast-paced way things are done in an investment bank may make the learning process so speedy. It's not only about working long hours; you also need to put in high-quality work quickly.
Many investment bankers are Type A personalities, which means they are ambitious and driven. Young bankers are inducted into a stressful lifestyle from the get-go. They are encouraged to work long hours with very little free time to fit in socializing or relaxation. Many turn to caffeine and drugs to help them cope.
How many hours do investment bankers work? ›Investment banking is not a normal 9-to-5 job — investment bankers can work anywhere from 60 to over 100 hours per week, depending on the company and the deals at hand. According to a 2021 Working Conditions Survey by Goldman Sachs, first-year investment banking analysts work more than 95 hours per week, on average.
Is investment banking a lot of math? ›No matter what major you pursue, investment banking will require strong math and analytical skills with a firm understanding of economics and how it affects corporate finance. Also, internships during your bachelor's program can help you build working experience and enhance networking in the financial field.
How many hours a week investment banking? ›An average investment banker works for around 80 hours a week, but some weeks this may increase to around 100 hours a week depending upon certain situations. The working hours differ based on the position of the investment banker. An investment banker analyst works the longest, around 80 hours a week.
Am I rich if I have $5 million dollars? ›You might need $5 million to $10 million to qualify as having a very high net worth while it may take $30 million or more to be considered ultra-high net worth. That's how financial advisors typically view wealth.
Can I retire on $2 million at 65? ›Yes, for some people, $2 million should be more than enough to retire. For others, $2 million may not even scratch the surface. The answer depends on your personal situation and there are lot of challenges you'll face. As of 2023, it seems the number of obstacles to a successful retirement continues to grow.
What will $1 million dollars be worth in 30 years? ›Based upon the numbers above, you will be a millionaire in 30 years. If you start today, that means you'll reach your goal in before-inflation terms in 2053. Your million dollar savings will be worth $411,987 in todays' dollars (inflation adjusted) at that time.
How to turn $1 million into $2 million? ›To go from $1 million to $2 million likewise requires 100% growth, but the next million after that requires only 50% growth (and then 33% and so on).
Can I become a millionaire in 5 years by investing? ›
Becoming a millionaire in five years is an extremely aggressive goal, but it could happen. Although hitting a home run with an investment is what dreams are made of, the most realistic path is to put aside big chunks of money every year. The historical average return for the S&P 500 index is 8%.
Can I live off interest on a million dollars? ›The historical S&P average annualized returns have been 9.2%. So investing $1,000,000 in the stock market will get you the equivalent of $96,352 in interest in a year. This is enough to live on for most people.
What do investment bankers do after 2 years? ›The work includes three primary tasks: presentations, analysis, and administrative. After two years of working for the investment bank, top performing analysts are often offered the chance to stay for a third year, and the most successful analysts can be promoted after three years to investment banking associate.
What is the highest position in investment banking? ›The Managing Director sits at the highest level of the investment bank hierarchy, and he/she is responsible for the profitability of the bank. It takes a long time, considerable skill, and even some good fortune to get to this level.
Which investment banks pay the most? ›- Lazard.
- Rothschild.
- Guggenheim.
- Bank of America.
- Citi.
- Goldman Sachs.
- JP Morgan.
- Morgan Stanley.
| Position Title | Typical Age Range | Base Salary (USD) |
|---|---|---|
| Analyst | 22-27 | $100-$125K |
| Associate | 25-35 | $175-$225K |
| Vice President (VP) | 28-40 | $250-$300K |
| Director / Senior Vice President (SVP) | 32-45 | $300-$350K |
Client Management:
Since investment banks work for customers across the world, investment bankers need to travel a lot to service their customers and maintain relationships with their firm's largest accounts.
Sales & trading compensation is generally lower than investment banking compensation across all levels, but some top traders could out-earn bankers.
Are Wall Street guys rich? ›The stock market is a volatile place that requires patience, risk tolerance, and thorough research. And those who make it to the top of Wall Street are also likely to be among the richest people in the world.
Do investment bankers work weekends? ›Investment bankers may work on weekends. They typically respond quickly to new developments in the market. Other times, they may work with clients who require their input as soon as possible or on projects requiring around-the-clock availability.
Who is the richest banker in the world? ›
Net worth:
Joseph Safra was a Lebanese-Brazilian billionaire, Safra Group chairman, the world's richest banker, and the wealthiest person in Brazil.
Unless the goal is senior management, most people in finance are out of there by age 50. That's not at just the biggest investment banks, either. In January, Charles Schwab Corp.'s Chief Financial Officer Christopher Dodds announced plans to quit in May, at age 47, to pursue greater "work-life balance."
What are the cons of being an investment banker? ›Hours: Without question one of the biggest drawbacks are the hours that Investment Bankers work. It is not unusual to be expected to work through the night when deal flow is high. Working weekends is also common when deals are close to being struck.
Why do investment bankers work so many hours? ›Senior bankers work long hours, but generally not unreasonable. They work hard because there is a lot of money at stake, which translates to a lot of responsibility. Also note senior bankers are really 'salespeople' who frequently have to work around clients' need and schedule.
Is 30 too late to become an investment banker? ›Are You Too Old? This is a vague question, so the only reasonable answer is: “It depends.” You will not win an IB Analyst or Associate role if you're a 40- or 50-year-old accountant, but if you want to make more money while doing something related to finance or deals, there are options.
Is it harder to be a lawyer or investment banker? ›Key Takeaways. Of the two careers, investment banking requires greater quantitative acumen and skills in math. The educational requirements for becoming a lawyer are much more rigid than those for becoming an investment banker.
Why not to become an investment banker? ›Even with education, experience, and enthusiasm, investment banking might not be for you. Lack of work-life balance is one reason to avoid becoming an investment banker. Investment bankers must also be able to manage high-pressure situations.
What is the hardest job in finance? ›The positions that some financial recruiters have identified as the hardest and most competitive jobs to fill include controllers (including hedge fund controllers), tax managers, fund and senior-level accountants, and valuation analysts.
How many days off do investment bankers get? ›At 60 hours, you can have one full free day off and generally only have to do some light work on the other day. You might not get to choose exactly when that time is, but in general, this is survivable. You'll see from the schedule that most people get into work around 10am in banking.
Can you be happy as an investment banker? ›Investment bankers rated their personality fit with their work an average of 3.4/5. The majority of investment bankers don't see personality fit as a hinderence in their career.
How much sleep do bankers get? ›
How Much Sleep Do You Get in Investment Banking? Investment Bankers who average 80-hour work days will likely get around 7 hours of sleep per night assuming that they go to bed at around 2 AM and wake up around 9 AM.
How do investment bankers stay awake? ›Other investment bankers take Ritalin or Adderall, which are given to children with ADHD but which are stimulants for adults. But the mainstay is probably coffee, energy drinks and other concoctions containing caffeine.
How hard is investment banking? ›Once you've built some models, torn through financials, etc, the work isn't usually terribly challenging - the hours and fire-drill work flow at times is what makes it hard. Sterling Archer: Whether or not banking is "difficult" depends on the level that you are.
What degree do I need for investment banking? ›For those seeking a career in investment banking, a bachelor's degree in finance is a prerequisite. Other potential acceptable majors include economics or business supplemented with a minor in finance. In a bachelor's in finance program, student's learn how to perform financial analyses and forecasts.
Is investment banking high paying? ›Investment banker, investment broker and financial services professional are some of the highest-paying positions in the finance industry. These roles typically require a bachelor's degree in a related field, such as finance or business, and may require additional certifications or licensing.
What are the chances of becoming an investment banker? ›Across the industry, even at the firms which saw slight year-on-year falls, the norm seems to be that the crude percentage chance of getting accepted to an investment banking graduate program is a bit more than 1%, but significantly less than 2%.
What is the life of an investment banker? ›A Day in the Life of a Investment Banker. Investment bankers advise their clients on high level issues of financial organization. They manage the issuance of bonds, recommend and execute strategies for taking over and merging with other companies, and handle selling a company's stock to the public.
How long does it take to become investment banker? ›Becoming an investment banker involves at least four years spent earning a bachelor's degree, plus additional time spent preparing for and earning FINRA licensure. Mid-level and advanced investment bankers typically earn master's degrees, which can take an additional two years to complete.
Can investment bankers take time off? ›For most prospective investment bankers, paid time off (PTO) isn't likely a key factor in deciding between firms. But once the job starts and the long hours begin adding up, a bank's vacation policy can take on a new level of importance.
What is the highest salary of an Investment Banker? ›Highest salary that a Investment Banker can earn is ₹36.2 Lakhs per year (₹3.0L per month). How does Investment Banker Salary in India change with experience? An Entry Level Investment Banker with less than three years of experience earns an average salary of ₹10 Lakhs per year.
Can an Investment Banker make a million a year? ›
It is possible to become a millionaire as an investment banker, but it is not easy. Investment bankers typically earn salaries in the $200,000 to $700,000 range, with bonuses that can bring their total income up to several million dollars per year.
Are you rich if you make $500,000 a year? ›Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.
Why are investment bankers paid so well? ›For a hefty fee, they bring industry, financial, and transactional expertise. They are basically gatekeepers — a company that wants to issue stock, issue debt, buy other companies, or sell itself has to engage with an investment bank (though some tech firms are working on ways around this).
Do investment bankers use a lot of math? ›Even when you are working with financial models, none of the math is complex. There's addition, subtraction, multiplication, and division… and occasionally built-in Excel functions like IRR, Mean, and Median. You never use calculus or differential equations or even geometry / trigonometry.
Can bankers make 100K? ›Yes, you can make $100,000 per year as a personal banker.
While possible, it is unlikely to earn over $100k as a personal banker because even higher-paid positions do not typically earn more than $90,000 per year. The average annual salary for a personal banker is $46,777.
Choose the right career
And one crucial detail to note: Millionaire status doesn't equal a sky-high salary. “Only 31% averaged $100,000 a year over the course of their career,” the study found, “and one-third never made six figures in any single working year of their career.”
Earning more than $100,000 per year would put you well ahead of the median American household, which brings in $74,784 as of 2021. Assuming you're an individual without dependents, that salary would qualify you as upper class, according to three different definitions (Brookings, Urban Institute and Pew Research).